Question 1

Use the figure below to answer the following question.
   Figure 6.3.3
-Refer to Figure 6.3.3.The graph shows the effect of _______ As a result _______.

Accepted Answer

A) an increase in the population; potential GDP increases and potential GDP per hour of labour decreases 
B) a decrease in the population; potential GDP decreases and potential GDP per hour of labour increases 
C) an increase in labour productivity; potential GDP increases and potential GDP per hour of labour does not change 
D) an increase in labour productivity; potential GDP increases and potential GDP per hour of labour decreases 
E) an increase in labour productivity; potential GDP and potential GDP per hour of labour increase 
A) an increase in the population; potential GDP increases and potential GDP per hour of labour decreases 
B) a decrease in the population; potential GDP decreases and potential GDP per hour of labour increases 
C) an increase in labour productivity; potential GDP increases and potential GDP per hour of labour does not change 
D) an increase in labour productivity; potential GDP increases and potential GDP per hour of labour decreases 
E) an increase in labour productivity; potential GDP and potential GDP per hour of labour increase

Question 2

According to the law of diminishing returns, along the aggregate production function, an additional unit of

Accepted Answer

A) labour produces more output than the previous unit. 
B) labour increases the real wage rate. 
C) labour decreases output. 
D) labour produces less output than the previous unit. 
E) capital produces more output than an additional unit of labour. 
A) labour produces more output than the previous unit. 
B) labour increases the real wage rate. 
C) labour decreases output. 
D) labour produces less output than the previous unit. 
E) capital produces more output than an additional unit of labour.

Question 3

The aggregate production function is graphed as

Accepted Answer

A) an upward- sloping line that becomes flatter as the quantity of labour increases. 
B) a downward- sloping curve. 
C) an upward- sloping line that becomes steeper as the quantity of labour increases. 
D) an upward- sloping straight line. 
E) a production possibilities frontier. 
A) an upward- sloping line that becomes flatter as the quantity of labour increases. 
B) a downward- sloping curve. 
C) an upward- sloping line that becomes steeper as the quantity of labour increases. 
D) an upward- sloping straight line. 
E) a production possibilities frontier.

Question 4

Canada's economic growth rate was highest in which of the following decades?

Accepted Answer

A) the 1930s 
B) the 1960s 
C) the 1970s 
D) the 1980s 
E) the 1990s 
A) the 1930s 
B) the 1960s 
C) the 1970s 
D) the 1980s 
E) the 1990s

Question 5

The Rule of 70 is used to

Accepted Answer

A) calculate the economy's growth rate. 
B) estimate how much of an economy's growth rate is attributable to increases in capital per hour of labour. 
C) estimate how long it will take the level of any variable to double. 
D) calculate the standard of living. 
E) estimate how much of an economy's growth rate is attributable to technological advance. 
A) calculate the economy's growth rate. 
B) estimate how much of an economy's growth rate is attributable to increases in capital per hour of labour. 
C) estimate how long it will take the level of any variable to double. 
D) calculate the standard of living. 
E) estimate how much of an economy's growth rate is attributable to technological advance.

Question 6

An assumption of the neoclassical growth theory is that

Accepted Answer

A) encouraging international trade increases economic growth. 
B) people earn a subsistence real wage in the long run. 
C) technological advances are the result of chance. 
D) the marginal product from all types of capital increases as more capital is accumulated. 
E) discoveries are a public capital good. 
A) encouraging international trade increases economic growth. 
B) people earn a subsistence real wage in the long run. 
C) technological advances are the result of chance. 
D) the marginal product from all types of capital increases as more capital is accumulated. 
E) discoveries are a public capital good.

Question 7

Between 1926 and 2016 real GDP per person in Canada grew at an average rate of

Accepted Answer

A) 3.6 percent a year. 
B) 4.3 percent a year. 
C) 2.0 percent a year. 
D) 1.7 percent a year. 
E) 2.8 percent a year. 
A) 3.6 percent a year. 
B) 4.3 percent a year. 
C) 2.0 percent a year. 
D) 1.7 percent a year. 
E) 2.8 percent a year.

Question 8

When labour productivity decreases, the

Accepted Answer

A) supply of labour curve shifts rightward and the real wage rate fall. 
B) demand for labour curve shifts leftward and the real wage rate falls. 
C) demand for labour decreases and the supply of labour decreases, and the real wage rate rises, falls, or remains unchanged. 
D) supply of labour curve shifts leftward and the real wage rate rises. 
E) demand for labour decreases and the supply of labour increases, and the real wage rate falls. 
A) supply of labour curve shifts rightward and the real wage rate fall. 
B) demand for labour curve shifts leftward and the real wage rate falls. 
C) demand for labour decreases and the supply of labour decreases, and the real wage rate rises, falls, or remains unchanged. 
D) supply of labour curve shifts leftward and the real wage rate rises. 
E) demand for labour decreases and the supply of labour increases, and the real wage rate falls.

Question 9

During 2016, the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2017, real GDP was $105 billion and the population was 0.85 billion.In 2016, real GDP per person was

Accepted Answer

A) $12,778. 
B) $124. 
C) $135. 
D) $128. 
E) $103.50. 
A) $12,778. 
B) $124. 
C) $135. 
D) $128. 
E) $103.50.

Question 10

Use the figure below to answer the following questions.
   Figure 6.3.2
-Refer to Figure 6.3.2.The equilibrium real wage rate is

Accepted Answer

A) $15 an hour. 
B) $20 an hour. 
C) $10 an hour. 
D) any wage rate above $15 an hour. 
E) any wage rate below $15 an hour. 
A) $15 an hour. 
B) $20 an hour. 
C) $10 an hour. 
D) any wage rate above $15 an hour. 
E) any wage rate below $15 an hour.

Question 11

The key difference between the neoclassical growth theory and the new growth theory is that

Accepted Answer

A) the pace of technological advances are caused by chance in new growth theory. 
B) knowledge is capital that is not subject to diminishing returns under new growth theory. 
C) labour productivity grows indefinitely in neoclassical growth theory. 
D) capital is subject to diminishing returns under new growth theory. 
E) increases in population drive workers' incomes back down to the subsistence level in neoclassical growth theory. 
A) the pace of technological advances are caused by chance in new growth theory. 
B) knowledge is capital that is not subject to diminishing returns under new growth theory. 
C) labour productivity grows indefinitely in neoclassical growth theory. 
D) capital is subject to diminishing returns under new growth theory. 
E) increases in population drive workers' incomes back down to the subsistence level in neoclassical growth theory.

Question 12

According to _______ growth theory, growth of real GDP per person comes to a stop because a population expl returns real GDP per person to the subsistence level. According to _______ growth theory, growth of real GDP per person comes to a stop when technology stops advancing.
According to _______ growth theory, growth of real GDP per person is unending.

Accepted Answer

A) classical; neoclassical; new 
B) neoclassical; classical; new 
C) classical; new; neoclassical 
D) new; neoclassical; classical 
E) new; classical; neoclassical 
A) classical; neoclassical; new 
B) neoclassical; classical; new 
C) classical; new; neoclassical 
D) new; neoclassical; classical 
E) new; classical; neoclassical

Question 13

A movement _______ illustrates a return to full employment in a business cycle expansion.

Accepted Answer

A) from a point inside the PPF to a point on the PPF 
B) down along the PPF 
C) from a point outside the PPF to a point inside the PPF 
D) up along the PPF 
E) from a point on the PPF to the origin 
A) from a point inside the PPF to a point on the PPF 
B) down along the PPF 
C) from a point outside the PPF to a point inside the PPF 
D) up along the PPF 
E) from a point on the PPF to the origin

Question 14

The Industrial Revolution in England was largely the result of

Accepted Answer

A) population growth. 
B) the elimination of the patent system. 
C) technological innovations that were financed mainly by government spending. 
D) technological innovations encouraged by the patent system. 
E) growth in human capital. 
A) population growth. 
B) the elimination of the patent system. 
C) technological innovations that were financed mainly by government spending. 
D) technological innovations encouraged by the patent system. 
E) growth in human capital.

Question 15

The key difference between the neoclassical growth theory and the classical growth theory is that

Accepted Answer

A) growth in the neoclassical growth theory ends with a population explosion. 
B) capital is not subject to diminishing returns under classical growth theory. 
C) increases in population drive workers' incomes back down to the subsistence level in classical growth theory. 
D) in classical growth theory, the pace of technological change influences the economic growth rate but economic growth does not influence the pace of technological change. 
E) capital is subject to diminishing returns under classical growth theory. 
A) growth in the neoclassical growth theory ends with a population explosion. 
B) capital is not subject to diminishing returns under classical growth theory. 
C) increases in population drive workers' incomes back down to the subsistence level in classical growth theory. 
D) in classical growth theory, the pace of technological change influences the economic growth rate but economic growth does not influence the pace of technological change. 
E) capital is subject to diminishing returns under classical growth theory.

Use the figure below to answer the following question. Figure 6.3.3 -Refer to Figure 6.3.3.The graph shows the effect of _ As a result _.

According to the law of diminishing returns, along the aggregate production function, an additional unit of

The aggregate production function is graphed as

Canada's economic growth rate was highest in which of the following decades?

The Rule of 70 is used to

An assumption of the neoclassical growth theory is that

Between 1926 and 2016 real GDP per person in Canada grew at an average rate of

When labour productivity decreases, the

During 2016, the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2017, real GDP was $105 billion and the population was 0.85 billion.In 2016, real GDP per person was

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.The equilibrium real wage rate is

The key difference between the neoclassical growth theory and the new growth theory is that

A movement _______ illustrates a return to full employment in a business cycle expansion.

The Industrial Revolution in England was largely the result of

The key difference between the neoclassical growth theory and the classical growth theory is that

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 6: Economic Growth

Use the figure below to answer the following question. Figure 6.3.3 -Refer to Figure 6.3.3.The graph shows the effect of _______ As a result _______.

According to the law of diminishing returns, along the aggregate production function, an additional unit of

The aggregate production function is graphed as

Canada's economic growth rate was highest in which of the following decades?

The Rule of 70 is used to

An assumption of the neoclassical growth theory is that

Between 1926 and 2016 real GDP per person in Canada grew at an average rate of

When labour productivity decreases, the

During 2016, the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2017, real GDP was $105 billion and the population was 0.85 billion.In 2016, real GDP per person was

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.The equilibrium real wage rate is

The key difference between the neoclassical growth theory and the new growth theory is that

A movement _______ illustrates a return to full employment in a business cycle expansion.

The Industrial Revolution in England was largely the result of

The key difference between the neoclassical growth theory and the classical growth theory is that

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Use the figure below to answer the following question. Figure 6.3.3 -Refer to Figure 6.3.3.The graph shows the effect of _ As a result _.